Most tenants, or around 85%, rent from private landlords and pay around $64 million a week which amounts to around $3.3 billion year. It would also improve incentives to engage in paid work if income tax was reduced," Stephens said. Even if the cost per property is not huge, the sheer volume of rental properties and second homes makes this a huge task". A CGT is like the Government taking a 33% stake in every rental property. And he believed it would get worse because the TWG recommended landlords pay the top tax rate of 33% on any gains made.

Source: Otago Daily Times April 17, 2019 02:48 UTC